"It is out there," says an investment specialist familiar withCrossPoint, which is known locally both for its physical dominanceon the Merrimack Valley landscape, and as the former headquartersof Wang Laboratories. The campus rose on the fortunes of that 1980stechnology giant only to fall in lockstep when the firm was overrunby competing technology and collapse of the hardware computersector. By 1994, the erstwhile Wang Towers was an aging whiteelephant unable to fetch even $1 million at an auction held thatFebruary by the lender. The cavernous, empty complex was scooped upfor 35 cents per sf by a group of entrepreneurial real estateprofessionals from Boston.


That sale would prove to be the steal of the decade in NewEngland's CRE market. Not only was the region on the throes of aseven-year rebound, the new owners crafted agreements with cityofficials and assembled a marketing program that led to several keyleases, including Nynex Corp. In September 1998, the re-brandedCrossPoint had stabilized enough to fetch $101 million from apartnership of Yale and the Blackstone Group, yielding a windfallfor the sellers and a second chance for the office park.


CrossPoint in the new millennium has seen its share of ups anddowns, with the surrounding Interstate 495 North office marketamong the hardest hit by the technology bust, especially after thatboom had created substantial new supply. Yale and Blackstone triedto cash out in 2002, and had a New Jersey investor ready to pay anestimated $156 million, until the deal was quashed by thedeteriorating office market. Another run was taken in 2005, andBlackstone ultimately sold its interest to Divco West while Yaleopted to stay put. Now, however, the resurgent office market and aflood of capital coming into suburban Massachusetts apparently hasthe towers once again up for grabs. Occupancy is said to be above90%.


At this point, none of the parties appear ready to talk aboutthe CrossPoint sale, with calls to Eastdil's Boston office andofficials at San Francisco-based DivcoWest not returned by pressdeadline. DivcoWest has been actively pursuing other real estate insuburban Boston, recently acknowledging the purchase of 100 Crosby Dr. inBedford and 210Littleton Rd. in Westford. GlobeSt.com previously reportedthose sales, but DivcoWest only recently owned up to the ownership,paying $61.5 million for 100 Crosby Dr. and $9.4 million for theWestford building. Sources say no asking price has been establishedfor CrossPoint, but observers predict the sale will fetch more than$150 million.

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